Cases studies on demand and supply PDF

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Cases studies on demand and supply

A QUICK RECAP OF PREVIOUS SESSION.. Q. price and quantity demand relation? Inverseorpositive q.graphlabelling HAND SANITIZER NOT AVAIBILE AND DEMAND INCREASE so hard hit has been the pharmaceutical sector. “We’re seeing a shortage of some Vitamin C and multivitamin brands on the medicine side. On top of this, the supply of brands like Whisper, Dettol and Savlon, Nanpro, Cerelac and even Dove shampoo in our store is all we have left, because we’re not getting any more stocks of th

DIRE CONSEQUENCES 2. onion price –dd sS

1. Crux What ae demand sided factors? How demand and supply will be changed due to these factors 2010- onion price increased…demand decreased 1. Substitute- shredded cabbage carrot pumpkins etc 2. Role of government: government to regulate curb onion price 3. Government said- harding by traders 4. Traders- normal demand and supply gap 5. Food habit change (demand side )..prtein foodfooch,fru 6. Majorfestivals,c 7. Anticipation, expectation about free model Supply side: 1.suitabilty of soil type…SUPPLY FACTOR S 2. Rabi crops types 3. LOWER COST OF CULTIVATION…SUPPLY INCREASED 4. Post harvest storage loss (perishable, khariff storage lessmonths )conventional ways to preserve onion is issues…. 5. Adverse weather (water logged fungal infection spread) Pest diseases infcions ,

SUPPLY SIDE ISSUES START WITH THESE TWO EXAMPLES. (EQUILIBRIUM) Q.Case 2: Durig Covid pandemic vegetables market price soar (onion, tomatoes potatoes, carrots)

Wholesale sale price as well as retail prices as supply disruption…supplu glut OF A stock at store and not movable so hey also specifically pointed to the lack of transportation and labour to lift stocks from wholesale markets, leading to disruptions in the movement of stocks from production centres to the retail level, even as prices of certain commodities like edible oils have been impacted because of a slowdown in production due to factory closures and labour shortage. However, lean availability of labourers is becoming a hurdle. To cope with it, we are using automated loading to some extent. We are ensuring products get delivered to our depots and from there distributed locally as per the situation there,” said Angshu Mallick, Deputy CEO, Adani Wilmar. The company sells flour, rice a

World food prices, meanwhile, fell sharply in March, hit by a slide in demand tied to the pandemic and a sharp fall in global oil prices, according to data released by the United Nations food agency Thursday. The Food and Agriculture Organization (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 172.2 points in March, down 4.3 per cent from February. “The price drops are largely driven by demand factors, not supply, and the demand factors are influenced by ever-more deteriorating economic prospects,” said FAO Senior Economist Abdolreza Abbassia

1. Prices increased in India as supply falLS OF PERISHABLE VEGETABLES TOMATOES, ONIONS,POTATOES because of disrupted transportation, TOLIFT VEG labour supply, no ways to depot fromwhole saletoretailer..so emand more supply less…price increases…DEPARTMENT OF CONSUMER AFFAIR… KEEP IN MIND ITS NOT PRODUCTION LINKED PROBLEMS 2. But edible oil ..due to lab supply not there noi oil production so demand more..price increases..FACTORY CLOSE DOWN 3. Word food price falls..demand falls due to entire economic recession..pruchasing power less..job salary..overall demand less. Oil prices falls.

IN MARCH ..THEN PRICE AND AVIABILITY BOTH FALLS Lower production due to labour shortage, is affecting both prices and availability.

Wholesale price trends depend on movement of goods to consumption points. “Vegetables are daily essentials. Everyone needs that every day. If supplies are disrupted, whatever limited supplies are coming, at the wholesale level, higher prices will be charged. It is a very murky situation at present. Wholesale prices depend on whether things are moving or not,” Ashok Gulati, economist and Infosys Chair Professor for Agriculture at ICRIER, said.

pre-lockdown stocks run out and replenishment is a big challenge as labour migration poses fresh hurdles across the supply chain — from the manufacturing stage to last-mile delivery. This is the growing concern among key players in consumer goods, from FMCG majors Dabur India and Hindustan Unilever to wholesaler Metro Cash and Carry and a slew of stockists and retailers. esides labour, the other key break in the supply chain has been the transport lifeline – thousands of trucks stuck in jams at semi-sealed border entry points. Result: raw materials, too, are in short supply. We had some raw input stock for disinfectants, handwash and hand sanitisers but we ran out soon as we ramped up production,” said a senior executive at Hindustan Unilever. The largest FMCG player in the nation is unlikely to restart production or supply of its non-essential items anytime soon. ompanies like Dabur India and Nestle are facing shutdowns and labour issues. FMCG companies also flagged the lack of communication between the Centre, states and the local administration as another factor delaying normalisation. “Proper implementation of guidelines would ensure seamless movement of raw materials and finished goods. There is a similar issue being faced at ports which is hurting smooth movement of imported raw materials and exporting of finished products,” Khan said.

WHY PULSES PRICE INCREASE? 1. PEOPLE CANNOT GO OUT EVERYDAY 2. MILK VEG PERIHABLE ..CANNT STORE..MAY NOT GET HUGE STOCK OFPULSES SUPPLY CHAIN DISRUPTED..SO PRICE HIKE

We will eventually witness shortage in pulses and whole spices as these items are largely transported from states like Rajasthan, Gujarat and Madhya Pradesh which were restricting movement of goods.”

Price falls when? Demand lower given supply..ss>dd Demand same, supply increases. Ss>dd.

FORUM DISCUSSION (AFTER CLASS WILLPOST) Start supply side with Energy example Q3. Energy demand how changes during covid..consider all aspects, domestic consumption, workfrom home, hot weather,, post lunch noon to afternoon…morning less…factories, business hub reduces consumtip.panjab famers less. Indian rainlway passenger rain stop,,,industries factories..price low 1.95 rs per units.state distribution utilities arenotpurchasing. Price falls,,,supply side..also giving more discount to consumers wh are notpaying bll.

Moreover, the sell bids on the exchange have been 2.5 times the buy bids, which demonstrates the availability of ample liquidity for utilities to procure power reliably.”

1. Doeslaw ofdemand exists in India for the product gold?why?is it normalornecessary or luxary product? 2. What are the mostly use of gold in India 3. GOLD DEMAND INCREASES IF 4. electronic devices like cell phones, televisions and 5. Akshay trithia 6. 7. 8. 9.

inflation, occasions, government policies, tastes and preferences had . The same has been challenged by the other precious metal Platinum (The Rich Man’s Gold) as the Coins a 10. The gold has some 11. industrial uses whereas the platinum is replaced by 12. Palladium for industrial purposes. The availability 13. of Platinum comparing Gold is very small

14. Role of government: restricting import quantity Restricting in quantity, increase in import duty, checking illegal the demand for the commodity will increase,

whereas all the other factors remain constant such as Income of the consumer, Technology, Trend, Manufacturing and Government restrictions in usage (Say’s Law). higher costs of maintenance such as re-making charges, wastages and locker charges. This shows that the demand among Indian customers for Gold continuous to remain same comparing Platinum. There is no impact on Gold and its demand among Indian’s because of the introduction of substitutes and price changes. Goldmonetization scheme Gold Monetisation Scheme, Sovereign Gold Bond Scheme and Indian Gold Coin Scheme can be related to Demand Function as the factors other than the price impacted reduction in Imports, use of

The mathematical expression of the Demand Function of Gold for the economic activity is,Qd (Quantity Demanded) = F (Price, Non-Price factors such as Income, Import Duties, Cost of Carry, Making Charges, Wastages………..)) The outcome of the Demand...